Bitcoin, Ethereum Traders Sell at a Loss: Is the Bottom Here?

Sahana Kiran
Bitcoin Ethereum
Source – Unsplash

After quite a turbulent year, the cryptocurrency market was slowly inching toward recovery. Bitcoin [BTC] recorded gains of over 50% in 2023. While most of them were pocketing profits, it was brought to light that for the first time since December 2022, Bitcoin and Ethereum [ETH] traders were selling at a loss.

According to on-chain analytics firm Santiment, Bitcoin and Ethereum traders were at a loss as opposed to a profit. Following the FTX debacle, BTC slumped to a low of $15.5K. In December, when the asset was around $16,000, traders sold it at a significant loss.

But now, for the first time since then and in 2023, these traders are at a loss. Santiment noted that this was pertinent as it indicated that Bitcoin and Ethereum bottoms could be here.


Elaborating on the same, Santiment said,

“Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.”

Bitcoin and its price are hotly debated topics. While some said that BTC’s bottom was below $20K, others countered that a major bottom hadn’t yet been established. However, Santiment wasn’t the only one who was vouching for the bottom narrative at the moment. Many analysts believe that the Bitcoin bottom has been reached.

At press time, Bitcoin was trading for $23,443.21 with a 1.21% daily drop. Ethereum, on the other hand, was priced at $1,636.96 with a 2.33% increase.

Who is currently selling their Bitcoin & Ethereum holdings?

While several were holding onto their cryptocurrencies, awaiting a major pump, some of them were getting rid of the same. But who are these traders?

The term “tourists” garnered immense popularity in 2022. These kinds of investors are the ones that hold less than 1 BTC. Market tourists leave the arena as prices start dipping. Whales weren’t out of the picture either. According to Glassnode, the number of whales in the Bitcoin market hit a three-year low.